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Globe and Mail
3 days ago
- Business
- Globe and Mail
Gilead Sciences Stock Gains 21% YTD: Buy, Sell or Hold?
Biotech giant Gilead Sciences, Inc. GILD has put up a strong performance amid a volatile market. Shares of this biotech giant have gained 21.1% year to date against the industry 's decline of 4.7%. The stock has outperformed the sector and the S&P 500 Index in this timeframe. Gilead Outperforms Industry, Sector & S&P 500 Index Gilead Sciences is a dominant player in the HIV market with market-leading treatments. Its diverse portfolio also includes drugs for liver, hematology/oncology and inflammation/respiratory diseases. Approval of new drugs, encouraging pipeline progress and positive data readouts have boosted investors' sentiment in the past six months. However, the oncology business is under pressure. Let's delve into GILD's strengths and weaknesses to analyze how to play the stock at present. GILD's Leading HIV Franchise Will Continue Its Momentum Gilead's flagship drug, Biktarvy (bictegravir 50 mg/emtricitabine 200 mg/tenofovir alafenamide 25 mg, BIC/FTC/TAF), for HIV-1 infection has become the number-one prescribed regimen for both treatment-naïve and switch patients. Biktarvy accounts for over 51% share of the treatment market in the United States and should maintain momentum for GILD in the upcoming quarters. Descovy (FTC 200 mg/TAF 25 mg) for pre-exposure prophylaxis (PrEP) is also witnessing good uptake. It maintains over 40% market share in the PrEP market in the United States. Gilead's efforts to innovate its HIV portfolio are impressive. Late-stage studies, PURPOSE 1 and PURPOSE 2, validated lenacapavir's potential to prevent HIV. The FDA accepted new drug application submissions for twice-yearly lenacapavir for HIV prevention under priority review, with a target action date of June 19, 2025. The European Medicines Agency validated the Marketing Authorization Application and EU-Medicines for All application for twice-yearly lenacapavir for HIV prevention. The successful development and potential approval of lenacapavir for the prevention of the disease should solidify Gilead's HIV franchise. Per GILD, lenacapavir, with its twice-yearly dosing, could set a new bar for HIV prevention and allow PrEP to reach a larger number of people who could benefit from a prevention regimen. Livdelzi Approval Strengthens GILD's Liver Disease Portfolio The FDA approval of seladelpar for the treatment of primary biliary cholangitis (PBC) has strengthened GILD's liver disease portfolio and validated its CymaBay acquisition. The drug's initial uptake is encouraging. The candidate was approved under the brand name Livdelzi. Gilead also recently received conditional marketing authorization from the European Commission for seladelpar for the treatment of PBC. Challenges for GILD's Oncology Business Gilead's oncology portfolio, comprising the Cell Therapy franchise and breast cancer drug Trodelvy, has diversified its overall business. However, the Cell Therapy franchise, comprising Yescarta and Tecartus, is currently under pressure due to competitive headwinds in the United States and Europe that are expected to continue in 2025. Breast cancer drug Trodelvy's sales were lower than expected in the first quarter due to inventory dynamics. Gilead announced positive top-line results from the phase III ASCENT-03 study on Trodelvy, which showed highly statistically significant and clinically meaningful improvement in progression-free survival in patients with first-line metastatic triple-negative breast cancer (mTNBC) who are not candidates for checkpoint inhibitors. The potential launch of anito-cel in multiple myeloma and Trodelvy in first-line mTNBC in 2026 will strengthen the company's oncology business. GILD's Valuation and Estimate Revision From a valuation standpoint, GILD is expensive. According to the price/earnings ratio, GILD's shares currently trade at 13.70x forward earnings, lower than the large-cap pharma industry's average of 14.62X but higher than its mean of 10.53X. Earnings estimates for GILD have moved north in the past 60 days. The bottom-line estimate for 2025 has increased to $7.91 from $7.87, while that for 2026 has improved to $8.39 from $8.31. Stay Invested in GILD Large biotech companies are generally considered safe havens for investors interested in this sector as they are well equipped to weather the uncertain macroenvironment. GILD is one of the dominant players in the HIV market. Gilead's efforts to constantly innovate its HIV portfolio should enable it to maintain growth amid competition from GSK plc GSK. GILD has also collaborated with Merck MRK to evaluate the investigational combination of islatravir and lenacapavir for the treatment of HIV. The potential launch of lenacapavir for PrEP in 2025 will be a significant boost for the company. Gilead's strategic deals and acquisitions to diversify its business are encouraging. However, Biktarvy sales are expected to be under pressure due to Medicare Part D redesign, which, in turn, should impact overall HIV growth. Hence, we advise prospective investors to wait and watch how well Biktarvy and the oncology business combat the existing headwinds before making a positive investment decision. In addition, we believe investors should also wait for better entry levels. For investors already owning the stock, it's important to note that Gilead has been consistently increasing and paying out dividends. The company declared a quarterly dividend of $0.79 per share of common stock for the second quarter of 2025. Its strong cash position (as of March 31, 2025, GILD had $7.9 billion of cash, cash equivalents and marketable debt securities) indicates that the current yield of 2.91% is sustainable. Gilead presently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. Today, See These 5 Potential Home Runs >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report GSK PLC Sponsored ADR (GSK): Free Stock Analysis Report Merck & Co., Inc. (MRK): Free Stock Analysis Report Gilead Sciences, Inc. (GILD): Free Stock Analysis Report
Yahoo
3 days ago
- Business
- Yahoo
Gilead Sciences Stock Gains 21% YTD: Buy, Sell or Hold?
Biotech giant Gilead Sciences, Inc. GILD has put up a strong performance amid a volatile market. Shares of this biotech giant have gained 21.1% year to date against the industry's decline of 4.7%. The stock has outperformed the sector and the S&P 500 Index in this timeframe. Image Source: Zacks Investment Research Gilead Sciences is a dominant player in the HIV market with market-leading treatments. Its diverse portfolio also includes drugs for liver, hematology/oncology and inflammation/respiratory diseases. Approval of new drugs, encouraging pipeline progress and positive data readouts have boosted investors' sentiment in the past six months. However, the oncology business is under pressure. Let's delve into GILD's strengths and weaknesses to analyze how to play the stock at present. Gilead's flagship drug, Biktarvy (bictegravir 50 mg/emtricitabine 200 mg/tenofovir alafenamide 25 mg, BIC/FTC/TAF), for HIV-1 infection has become the number-one prescribed regimen for both treatment-naïve and switch patients. Biktarvy accounts for over 51% share of the treatment market in the United States and should maintain momentum for GILD in the upcoming quarters. Descovy (FTC 200 mg/TAF 25 mg) for pre-exposure prophylaxis (PrEP) is also witnessing good uptake. It maintains over 40% market share in the PrEP market in the United States. Gilead's efforts to innovate its HIV portfolio are impressive. Late-stage studies, PURPOSE 1 and PURPOSE 2, validated lenacapavir's potential to prevent HIV. The FDA accepted new drug application submissions for twice-yearly lenacapavir for HIV prevention under priority review, with a target action date of June 19, 2025. The European Medicines Agency validated the Marketing Authorization Application and EU-Medicines for All application for twice-yearly lenacapavir for HIV prevention. The successful development and potential approval of lenacapavir for the prevention of the disease should solidify Gilead's HIV franchise. Per GILD, lenacapavir, with its twice-yearly dosing, could set a new bar for HIV prevention and allow PrEP to reach a larger number of people who could benefit from a prevention regimen. The FDA approval of seladelpar for the treatment of primary biliary cholangitis (PBC) has strengthened GILD's liver disease portfolio and validated its CymaBay acquisition. The drug's initial uptake is encouraging. The candidate was approved under the brand name Livdelzi. Gilead also recently received conditional marketing authorization from the European Commission for seladelpar for the treatment of PBC. Gilead's oncology portfolio, comprising the Cell Therapy franchise and breast cancer drug Trodelvy, has diversified its overall business. However, the Cell Therapy franchise, comprising Yescarta and Tecartus, is currently under pressure due to competitive headwinds in the United States and Europe that are expected to continue in 2025. Breast cancer drug Trodelvy's sales were lower than expected in the first quarter due to inventory dynamics. Gilead announced positive top-line results from the phase III ASCENT-03 study on Trodelvy, which showed highly statistically significant and clinically meaningful improvement in progression-free survival in patients with first-line metastatic triple-negative breast cancer (mTNBC) who are not candidates for checkpoint inhibitors. The potential launch of anito-cel in multiple myeloma and Trodelvy in first-line mTNBC in 2026 will strengthen the company's oncology business. From a valuation standpoint, GILD is expensive. According to the price/earnings ratio, GILD's shares currently trade at 13.70x forward earnings, lower than the large-cap pharma industry's average of 14.62X but higher than its mean of Source: Zacks Investment Research Earnings estimates for GILD have moved north in the past 60 days. The bottom-line estimate for 2025 has increased to $7.91 from $7.87, while that for 2026 has improved to $8.39 from $8.31. Image Source: Zacks Investment Research Large biotech companies are generally considered safe havens for investors interested in this sector as they are well equipped to weather the uncertain macroenvironment. GILD is one of the dominant players in the HIV market. Gilead's efforts to constantly innovate its HIV portfolio should enable it to maintain growth amid competition from GSK plc GSK. GILD has also collaborated with Merck MRK to evaluate the investigational combination of islatravir and lenacapavir for the treatment of HIV. The potential launch of lenacapavir for PrEP in 2025 will be a significant boost for the company. Gilead's strategic deals and acquisitions to diversify its business are encouraging. However, Biktarvy sales are expected to be under pressure due to Medicare Part D redesign, which, in turn, should impact overall HIV growth. Hence, we advise prospective investors to wait and watch how well Biktarvy and the oncology business combat the existing headwinds before making a positive investment decision. In addition, we believe investors should also wait for better entry levels. For investors already owning the stock, it's important to note that Gilead has been consistently increasing and paying out dividends. The company declared a quarterly dividend of $0.79 per share of common stock for the second quarter of 2025. Its strong cash position (as of March 31, 2025, GILD had $7.9 billion of cash, cash equivalents and marketable debt securities) indicates that the current yield of 2.91% is sustainable. Gilead presently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report GSK PLC Sponsored ADR (GSK) : Free Stock Analysis Report Merck & Co., Inc. (MRK) : Free Stock Analysis Report Gilead Sciences, Inc. (GILD) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
20-05-2025
- Business
- Yahoo
Gilead Sciences vs GSK: Which HIV Drugmaker is a Smarter Buy Now?
Gilead Sciences, Inc. GILD and GSK GSK are pioneers in the human immunodeficiency virus (HIV) treatment space. Gilead Sciences is a dominant player in the HIV market with market-leading treatments. HIV drug sales accounted for 69% of total product sales in the first quarter of 2025. GILD's diverse portfolio also includes drugs for liver, hematology/oncology and inflammation/respiratory diseases. GSK, too, has a strong HIV portfolio in the industry. HIV drug sales accounted for 23% of total sales in the first quarter. GSK also has a strong foothold in respiratory, oncology and other therapeutic areas, along with a robust portfolio of vaccines. Both these biotech giants have delivered consistent returns to shareholders on the back of strong sales and earnings momentum. In such a scenario, choosing one stock over another can be challenging. Let us delve into their fundamentals, potential growth prospects, challenges and valuation levels to make a prudent choice. Gilead is a dominant player in the HIV market. The company's flagship drug, Biktarvy (bictegravir 50 mg/emtricitabine 200 mg/tenofovir alafenamide 25 mg, BIC/FTC/TAF), for HIV-1 infection has become the number-one prescribed regimen for both treatment-naïve and switch patients. Biktarvy accounts for over 51% share of the treatment market in the United States and should maintain momentum for GILD in the upcoming quarters. Descovy (FTC 200 mg/TAF 25 mg) for pre-exposure prophylaxis (PrEP) is also witnessing good uptake. It maintains over 40% market share in the PrEP market in the United States. Gilead's efforts to innovate its HIV portfolio are impressive. Late-stage studies, PURPOSE 1 and PURPOSE 2, validated lenacapavir's potential to prevent HIV. The FDA accepted new drug application submissions for twice-yearly lenacapavir for HIV prevention under priority review, with a target action date of June 19, 2025. The European Medicines Agency validated the Marketing Authorization Application and EU-Medicines for All application for twice-yearly lenacapavir for HIV prevention. The successful development and potential approval of lenacapavir for the prevention of the disease should solidify Gilead's HIV franchise. Per GILD, lenacapavir, with its twice-yearly dosing, could set a new bar for HIV prevention and allow PrEP to reach a larger number of people who could benefit from a prevention regimen. Separately, Gilead's oncology portfolio, comprising the Cell Therapy franchise and breast cancer drug Trodelvy, has diversified its overall business. The breast cancer drug Trodelvy has performed well since its approval. However, the Cell Therapy franchise, comprising Yescarta and Tecartus, is currently under pressure due to competitive headwinds in the United States and Europe that are expected to continue in 2025. The Liver Disease portfolio includes treatments for HCV, chronic hepatitis B virus (HBV) and chronic hepatitis delta virus (HDV). Gilead is making efforts to expand this franchise further. The recent FDA approval of seladelpar, under the brand name Livdelzi, for the treatment of primary biliary cholangitis has strengthened the liver disease portfolio. As of March 31, 2025, Gilead's total debt-to-total-capital ratio was 56.7%. It had $7.9 billion in cash, cash equivalents, and marketable debt securities, and $22.1 billion in long-term debt at the end of the first quarter. GSK's HIV portfolio sales are being driven by strong patient demand of Cabenuva, Apretude and Dovato. The company is focused on the next generation of HIV innovation with integrase inhibitors (INSTIs) — for HIV treatment and prevention. Cabenuva, the only complete long-acting injectable regimen for HIV treatment, is witnessing strong patient demand across the United States and Europe. Dovato, the first and only once-daily Oral two-drug-regimen (2DR) for the treatment of HIV infection in both treatment naive and virally suppressed adults and adolescents continues to be the largest product in the HIV portfolio. Apretude, the first long-acting injectable option for HIV prevention is witnessing encouraging traction. GSK currently has three new INSTIs in development and five planned launches. These should continue to drive performance in the coming decade. Apart from this, GSK's diverse portfolio comprises drugs for oncology, respiratory and immunology, along with a wide portfolio of vaccines for meningitis, flu and others. Key drug Nucala has witnessed stupendous success. New oncology drugs Jemperli and Ojjaara are witnessing strong patient demand and contributing to top-line growth. Recent approvals of Jesduvroq/ Duvroq (daprodustat) for anemia due to chronic kidney disease (CKD) in adults on dialysis in the United States, Arexvy, its RSV vaccine for older adults in the United States and Europe, and Ojjaara (momelotinib) for myelofibrosis with anemia in the United States should drive growth. Penmenvy, GSK's pentavalent MenABCWY meningococcal vaccine and Blujepa/gepotidacin for treating, uncomplicated urinary tract infection were approved in the United States in the first quarter of 2025. GSK is also working on expanding the label of marketed products into additional indications. However, a challenging macro environment in China and potential for changes in vaccination policies in the United States are expected to hurt Vaccine sales in the near term. As of March 31, 2025, GSK's net debt (short term+long term) was $23.2 billion. The cash/liquid investments were around $5.8 billion, higher than the short-term debt of $2.5 billion. The debt/capital ratio of 57.4% at the end of March 2025 was higher than 56.5% at the end of December 2024. The Zacks Consensus Estimate for GILD's 2025 sales implies a year-over-year decrease of 0.84%, and that for earnings per share (EPS) suggests a year-over-year improvement of 71.21%. EPS estimates for both 2025 and 2026 have moved north in the past 60 days. Image Source: Zacks Investment Research The Zacks Consensus Estimate for GSK's 2025 sales implies a year-over-year increase of 6.2% while that for EPS suggests a year-over-year improvement of 6.17%. EPS estimates for both 2025 and 2026 have moved north in the past 60 days. Image Source: Zacks Investment Research From a price-performance perspective, GILD has fetched better returns than GSK so far this year. Shares of GILD have gained 15.7%, while those of GSK have risen 14.7%. The industry has declined 6.2% in the said period. Image Source: Zacks Investment Research From a valuation standpoint, GILD is more expensive than GSK. GILD's shares currently trade at 13.11X forward earnings, higher than 8.44 for GSK. Image Source: Zacks Investment Research GILD and GSK's attractive dividend yield is a strong positive for investors. However, GSK's dividend yield of 4.48% is higher than GILD's 3.08%. Large biotech companies are generally considered safe havens for investors interested in this sector. Both GILD and GSK are stalwarts in the volatile dynamic biotech industry. Gilead's efforts to constantly innovate its HIV portfolio should enable it to maintain growth. A strong catalyst for the stock going forward is a potential approval of lenacapavir for HIV prevention (target action date in June 2025). However, GILD's HIV portfolio, which accounts for lion's share of its total revenues, is likely to be under pressure due to the new Medicare Part D model and the oncology business facing headwinds. GILD has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. GSK also enjoys a strong position in the HIV market. It is witnessing increased sales growth, reflecting successful new launches in oncology and long-acting HIV medicines. GSK has some promising new cancer drugs, namely Ojjaara and Jemperli, in its portfolio. Potential label expansion of key drugs should bolster growth. With a Zacks Rank #2 (Buy) at present, we believe GSK is a better pick at current valuation levels, given its wide and diverse portfolio, upcoming product launches, promising pipeline candidates and recent positive estimate revisions. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report GSK PLC Sponsored ADR (GSK) : Free Stock Analysis Report Gilead Sciences, Inc. (GILD) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
24-04-2025
- Business
- Yahoo
Gilead reports quarterly profit, revenue flat as cancer sales slow
By Deena Beasley (Reuters) -Gilead Sciences on Thursday reported slightly higher-than-expected quarterly earnings on flat revenue, as higher sales of drugs for HIV and liver disease along with expense tightening offset lower cancer drug sales. Adjusted earnings per share came in at $1.81, just ahead of the average analysts' estimate of $1.79 a share, as compiled by LSEG. In the year-earlier quarter, Gilead posted a loss due to acquisition and impairment charges. Revenue of $6.7 billion was flat compared to a year ago and shy of the $6.8 billion expected by analysts. Sales of HIV drug Biktarvy rose 7% to $3.15 billion, roughly in line with Wall Street estimates, while sales of liver disease drugs rose 3% to $758 million. The California-based biotech has previously said its HIV revenue would be largely flat in 2025 because of changes to the federal government's Medicare health plan for people age 65 and over aimed at reducing out-of-pocket costs for beneficiaries. Sales of cancer drug Trodelvy fell 5% to $293 million, below analysts' estimates of $362 million, due to pricing and inventory issues. Cell therapy product sales fell 3% to $464 million, which Gilead attributed to lower U.S. demand. Sales of COVID-19 antiviral Veklury fell 45% to $302 million, while analysts had forecast $392 million. For the full year, Gilead said it still expects adjusted earnings of $7.70 to $8.10 per share on product sales of $28.2 billion to $28.6 billion, which includes the known impact of tariffs so far imposed by the Trump administration. The U.S. Food and Drug Administration is expected to decide by June 19 whether to approve Gilead's HIV drug lenacapavir as a twice-yearly injection for HIV prevention. "We haven't seen or heard anything to date that would alter our expectations for launch," Gilead CEO Daniel O'Day said in an interview. He also said Gilead continues to discuss with government officials the importance of support for programs to diagnose HIV infection and link people to care. "The information we are getting is that they understand that," O'Day said. Gilead's research and development expenses for the quarter were $1.4 billion, compared with $1.5 billion a year earlier, while sales and administrative costs dropped to $1.3 billion from $1.4 billion. (Reporting By Deena BeasleyEditing by Bill Berkrot)
Reuters
24-04-2025
- Business
- Reuters
Gilead reports quarterly profit, revenue flat as cancer sales slow
Summary Companies Adjusted profit $1.81 per share vs analyst estimates of $1.79 Revenue flat vs year earlier at $6.7 billion Biktarvy sales rise 7%, cell therapy sales fall 3% April 24 (Reuters) - Gilead Sciences (GILD.O), opens new tab on Thursday reported slightly higher-than-expected quarterly earnings on flat revenue, as higher sales of drugs for HIV and liver disease along with expense tightening offset lower cancer drug sales. Adjusted earnings per share came in at $1.81, just ahead of the average analysts' estimate of $1.79 a share, as compiled by LSEG. In the year-earlier quarter, Gilead posted a loss due to acquisition and impairment charges. Keep up with the latest medical breakthroughs and healthcare trends with the Reuters Health Rounds newsletter. Sign up here. Revenue of $6.7 billion was flat compared to a year ago and shy of the $6.8 billion expected by analysts. Sales of HIV drug Biktarvy rose 7% to $3.15 billion, roughly in line with Wall Street estimates, while sales of liver disease drugs rose 3% to $758 million. The California-based biotech has previously said its HIV revenue would be largely flat in 2025 because of changes to the federal government's Medicare health plan for people age 65 and over aimed at reducing out-of-pocket costs for beneficiaries. Sales of cancer drug Trodelvy fell 5% to $293 million, below analysts' estimates of $362 million, due to pricing and inventory issues. Cell therapy product sales fell 3% to $464 million, which Gilead attributed to lower U.S. demand. Sales of COVID-19 antiviral Veklury fell 45% to $302 million, while analysts had forecast $392 million. For the full year, Gilead said it still expects adjusted earnings of $7.70 to $8.10 per share on product sales of $28.2 billion to $28.6 billion, which includes the known impact of tariffs so far imposed by the Trump administration. The U.S. Food and Drug Administration is expected to decide by June 19 whether to approve Gilead's HIV drug lenacapavir as a twice-yearly injection for HIV prevention. "We haven't seen or heard anything to date that would alter our expectations for launch," Gilead CEO Daniel O'Day said in an interview. He also said Gilead continues to discuss with government officials the importance of support for programs to diagnose HIV infection and link people to care. "The information we are getting is that they understand that," O'Day said. Gilead's research and development expenses for the quarter were $1.4 billion, compared with $1.5 billion a year earlier, while sales and administrative costs dropped to $1.3 billion from $1.4 billion.
